FM to review PSU investment with top ministry officials

Finance Minister Nirmala Sitharaman will review the capital expenditures undertaken by various public sector companies so far this year and their plans for the next five years, in a meeting with top officials from various ministries today afternoon.

The move is aimed at expediting investment by PSU firms, which can generate enough cash in the system and help boost demand for goods from people.

Secretaries of various administrative ministries overseeing each PSU are expected to give a presentation each to the minister on the progress made so far on their investment front.

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Ministries of Oil and Natural Gas, Steel, Road Transport and Highways, Shipping, Power, Civil Aviation and Housing and Urban Affairs are expected to give their presentation to the minister on the capex plan of the PSU units under them.

The meeting comes within a fortnight of the minister asking Navratna and Maharatna companies to boost their boost capital expenditure during the current fiscal year (2019-20)so as to pump liquidity into the market and give a leg-up to demand.

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Ministries of Oil and Natural Gas, Steel, Road Transport and Highways, Shipping, Power, Civil Aviation and Housing and Urban Affairs are expected to give their presentation to the minister on the capex plan of the PSU units under them.

The meeting comes within a fortnight of the minister asking Navratna and Maharatna companies to boost their boost capital expenditure during the current fiscal year (2019-20)so as to pump liquidity into the market and give a leg-up to demand.

The earlier meeting on September 6 had reviewed payments by PSUs to small and medium industries for procurements and other contracts and resolution of their outstandings, which may have been held up due to disputes.

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In the meeting, it was decided that the finance ministry would constantly monitor the progress of large infrastructure projects for the ministries as well as the CPSEs and follow up meetings would be held regularly. It was also decided that the finance ministry will develop a dashboard for enabling other ministries to upload figures of their investment and other expenditures on a periodic basis.

The Centre has budgeted Rs 3.38-lakh crore for capital expenditure in 2019-20. Various PSUs have their own plan too.

Today's meeting comes within hours of the finance minister holding discussions with private sector banks and financial institutions on the prevailing economic situation in the country.